JetBlue removes Neeleman as CEO
05-10-2007, 09:04 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Jul 2006
Position: FO
Posts: 290
JetBlue removes Neeleman as CEO
By Chris Reiter
1 hour, 22 minutes ago
NEW YORK (Reuters) - JetBlue Airways Corp. (Nasdaq:JBLU - news) removed David Neeleman as chief executive on Thursday, three months after a major service meltdown, putting the 47-year-old founder of the company into the role of non-executive chairman.
JetBlue said Neeleman, who started the company in 1998, will be replaced as CEO by President Dave Barger, 49, effective immediately. The company said the change had been in the works for some time.
The change in leadership comes after JetBlue suffered an embarrassing service disruption on February 14 that exposed weaknesses in the No. 8 U.S. carrier's operations.
A Valentine's Day ice storm stranded passengers on planes for hours, led to nearly 1,200 flight cancellations over several days, and cost the company more than $30 million.
Neeleman, an airline industry pioneer, said the new role would free him up to spend more time on strategic issues that had been neglected amid the carrier's rapid growth.
"When you're a founder and an entrepreneur and you get mired in the operation, it's not good for anybody," Neeleman said in an interview.
"This is a much better structure for us going forward," he said. "That was the board's recommendation, and I said 'Great, let's do it'."
"The whole thing with Valentine's Day, it got us all focused back on the operation," Neeleman said. "It really highlighted that the strategic part is so important."
He said the new role will give him more time to focus on issues like developing JetBlue's Live TV unit, alternative sources of jet fuel, new forms of electronic ticketing, and opportunities afforded by the open skies agreement between the U.S. and Europe.
Barger, who has worked alongside Neeleman since 1998, said he didn't expect significant changes to the company's strategy.
"We're situated well now," he said in an interview.
JetBlue shares, which have fallen about 30 percent over the last four months, rose 5.5 percent to $10.97 on Nasdaq.
Neeleman, a Mormon and a father of nine, was a successful pioneer in the airline industry, shaking up U.S. air travel. In JetBlue, he created a low-fare carrier that offered customer service perks such as live television and leather seats.
Before JetBlue, he set up Morris Air before eventually selling it to Southwest Airlines Co. (NYSE:LUV - news).
According to the company's latest proxy filing with securities regulators in April, Neeleman owned 10.77 million shares of JetBlue, worth about $112 million. That represents about 6 percent of all the company's shares.
In 2006, Neeleman received a salary of $200,000 and a $50,000 incentive award.
JetBlue had been strengthening its management in recent months, bringing on board Russell Chew -- former chief operating officer at the Federal Aviation Administration -- as its chief operating officer in March.
1 hour, 22 minutes ago
NEW YORK (Reuters) - JetBlue Airways Corp. (Nasdaq:JBLU - news) removed David Neeleman as chief executive on Thursday, three months after a major service meltdown, putting the 47-year-old founder of the company into the role of non-executive chairman.
JetBlue said Neeleman, who started the company in 1998, will be replaced as CEO by President Dave Barger, 49, effective immediately. The company said the change had been in the works for some time.
The change in leadership comes after JetBlue suffered an embarrassing service disruption on February 14 that exposed weaknesses in the No. 8 U.S. carrier's operations.
A Valentine's Day ice storm stranded passengers on planes for hours, led to nearly 1,200 flight cancellations over several days, and cost the company more than $30 million.
Neeleman, an airline industry pioneer, said the new role would free him up to spend more time on strategic issues that had been neglected amid the carrier's rapid growth.
"When you're a founder and an entrepreneur and you get mired in the operation, it's not good for anybody," Neeleman said in an interview.
"This is a much better structure for us going forward," he said. "That was the board's recommendation, and I said 'Great, let's do it'."
"The whole thing with Valentine's Day, it got us all focused back on the operation," Neeleman said. "It really highlighted that the strategic part is so important."
He said the new role will give him more time to focus on issues like developing JetBlue's Live TV unit, alternative sources of jet fuel, new forms of electronic ticketing, and opportunities afforded by the open skies agreement between the U.S. and Europe.
Barger, who has worked alongside Neeleman since 1998, said he didn't expect significant changes to the company's strategy.
"We're situated well now," he said in an interview.
JetBlue shares, which have fallen about 30 percent over the last four months, rose 5.5 percent to $10.97 on Nasdaq.
Neeleman, a Mormon and a father of nine, was a successful pioneer in the airline industry, shaking up U.S. air travel. In JetBlue, he created a low-fare carrier that offered customer service perks such as live television and leather seats.
Before JetBlue, he set up Morris Air before eventually selling it to Southwest Airlines Co. (NYSE:LUV - news).
According to the company's latest proxy filing with securities regulators in April, Neeleman owned 10.77 million shares of JetBlue, worth about $112 million. That represents about 6 percent of all the company's shares.
In 2006, Neeleman received a salary of $200,000 and a $50,000 incentive award.
JetBlue had been strengthening its management in recent months, bringing on board Russell Chew -- former chief operating officer at the Federal Aviation Administration -- as its chief operating officer in March.
05-10-2007, 12:29 PM
#4
Gets Weekends Off
Joined APC: Oct 2005
Position: Brown
Posts: 1,126
05-10-2007, 01:59 PM
#5
Gets Weekends Off
Joined APC: Feb 2007
Position: At the Blue Line
Posts: 244
This is not all that he makes, I think he does just fine with the liveTV company.
05-10-2007, 02:38 PM
#6
Gets Weekends Off
Joined APC: Aug 2006
Position: 737 Right
Posts: 1,385
05-10-2007, 04:12 PM
#7
Don't want to participate
Joined APC: Jul 2005
Position: 737 Left Seat
Posts: 1,016
His total compensation is among the tops in the industry, while that of his employees is in the bottom. I think that's also a fair statement. Could also easily say that whatever value his holdings have relies on keeping wages low.
05-10-2007, 06:31 PM
#8
Line Holder
Joined APC: Apr 2007
Posts: 46
Good point genius. Hey by the way, how long until herb and company started paying you guys above slave wages. I know ten or fifteen years ago your compensation was below the rest of the industry. Guess what, the company made profit on your backs but I don't here you talking about that.
05-10-2007, 06:38 PM
#9
Gets Weekends Off
Joined APC: Jan 2006
Position: 737 Left
Posts: 202
Good point genius. Hey by the way, how long until herb and company started paying you guys above slave wages. I know ten or fifteen years ago your compensation was below the rest of the industry. Guess what, the company made profit on your backs but I don't here you talking about that.
Thread
Thread Starter
Forum
Replies
Last Post
